Reprinted from

TIRE EDUCATION The story of diversion in California offers lessons on the ways management of this “special ” is shifting. An expert explains the evolution of end markets and policy within the Golden State – and explores how the products could roll into a larger circular economy. BY ED BOISSON

ften defined as “special waste,” have always increased to an all-time high of 93 percent in 2012 as tire-derived had a unique niche within the broader exports peaked. The diversion percentage then dropped off to industry. Tires make up less than 2 percent of 81 percent in 2015. the municipal solid waste stream, yet tire manage- As described elsewhere in this issue of Resource Recycling, recy- Oment is tightly regulated by most states, and tire recyclers are cling stakeholders are increasingly embracing new policy goals such encountering a variety of local, regional and global market as establishing a circular economy, and they are shifting from waste development opportunities and challenges. management to sustainable materials management as a means of Tires offer a window on innovative market development strat- achieving those goals. CalRecycle is integrating such concepts into egies and the nascent shift to sustainability-focused policies. This its policies and programs, including focusing on a refined definition is especially true in California, where the Department of Resources of , promoting feedstock conversion (for example, Recycling and Recovery (CalRecycle) has implemented an expan- replacing virgin rubber or other raw materials with in sive, evolving tire recycling market development strategy for over established products), and researching the recyclability of tire-de- two decades. This article offers a California tire recycling snapshot, rived products. But as with other recyclables, transforming the tire providing a high-level status report on the sector and the issues material life cycle is a difficult, long-term effort. shaping its future. INITIATIVES UNDER WAY TO BOOST RECYCLING DIVERSION VERSUS RECYCLING A number of efforts and societal factors are having an impact on tire VERSUS SUSTAINABILITY sustainability trends. CalRecycle’s Five Year Tire Plan has long included a 90 percent First, tires are being designed for increasingly long lives, and diversion goal for tires, though it is not legislated. But CalRecycle has sponsored targeted education campaigns promoting since 2011 – when legislators set a statewide goal of recycling or the consumer maintenance needed to achieve this result. Some new composting 75 percent of all materials by 2020 – CalRecycle has tires are designed to use less material, and tire manufacturers are focused on increasing recycling activity. For measurement purposes, experimenting with plant-based rubber polymers that could replace tire recycling includes as well as use of recovered material for a portion of the oil-based used to make tires (in production of new tire-derived products from crumb rubber and use addition to from trees, which is already part of the of tire-derived aggregate in civil applications. Recycling feedstock mix). Reduced driving patterns and the rise of “sharing excludes and beneficial uses like landfill alternative daily economy” services like Uber may also reduce tire generation. cover (ADC) that otherwise “count” toward diversion goals. However, statistics on waste reduction, resource conservation and As shown in Figure 1 on page 28, the volume and percentage tire life-cycle impacts generally are not readily available. of tires recycled has been relatively flat for several years, fluctuating Reuse, including commercial truck tire retreading and resale of between fairly tight boundaries, with a 2015 rate of 36 percent. partially worn used tires, is strong and profitable, but also mature Total diversion, on the other hand, has fluctuated more widely and with little growth potential. Overall in California, 74,286 tons of

RR | August 2016 27 tires were reused in 2015, with 43,358 tons retreaded FIGURE 1: CALIFORNIA SCRAP TIRE DIVERSION AND RECYCLING TRENDS and 30,928 tons sold for direct reuse. In addition, companies involved in tire reuse say the increasing quan- tity of lower-tier, low-cost tires from China is damag- ing their bottom lines. The low prices of these products undercut tire reuse sales, and due to their smaller tread size they have very limited, if any, reuse potential. In response to a formal U.S. tire manu- facturer complaint, the U.S. International Trade Agency recently determined certain tire imports are unfairly priced and harm the U.S. market, and the agency devel- oped a system of punitive tariffs, though they have not yet been imposed. Meanwhile, CalRecycle programs have helped devel- Source: California Department of Resources Recycling and Recovery (CalRecycle) op a robust crumb rubber infrastructure and markets. In 2015, 76,195 tons of California tires were used to produce crumb rubber, 17 per- coverage of perceived environmental, health months, 42,000 tons are projected to be cent of all California tires. Over 17 million and safety concerns, this segment has sus- used in a single lightweight fill initiative. pounds of buffings from retreaders were also tained strong sales. Barriers include educating agencies and used, but tracked separately from crumb Molded and extruded products made engineers about the cost and performance rubber. These buffings were used primarily up about 8 percent of crumb rubber sales benefits when compared with conventional in pour-in-place playground surfacing and in 2015, making it the smallest-volume seg- construction materials in civil engineering landscape mulch products. ment. However, it is a diverse area. Califor- applications and overcoming logistical and About half of California crumb rubber nia-made products in this category include regulatory supply hurdles. flows to rubberized paving applications, roofing, flooring, sealants, landscaping items Tire-derived fuel is a strong and prof- supported by CalRecycle grants and techni- and much more. With the potential for itable market segment that thrives without cal assistance to local agencies. CalRecycle high-value product manufacturing, CalRe- state support. In 2015, four California research and support paved the way for cycle is providing additional support to this cement kilns consumed 85,721 tons of 2005 legislation requiring Caltrans (the state segment, including a pilot incentive pro- tire-derived fuel (over 19 percent of all Cali- transportation agency) to use crumb rubber gram that offers 10 to 40 cents per pound to fornia tires), in addition to over 12,000 tons in at least 35 percent of its paving proj- manufacturers as well as product testing and of tire fiber, a crumb rubber production ects. Although that target has not yet been technical assistance. residual. This demand level is near the up- achieved, the policy has greatly boosted per boundary given current kiln permitting demand. And Caltrans is now investigating OTHER MARKETS FOR MATERIAL and infrastructure. CalRecycle has been new specifications that could more than CalRecycle is focused on expanding the legislatively prohibited from promoting tire double state rubberized pavement use by above recycling markets, but tires contin- combustion since 2003, although prior to 2018. ue to move to high-volume, occasionally this it did provide support for research on CalRecycle’s grant program for tire-de- volatile diversion markets, and sometimes to the technology. rived products funds local purchases of . Tire-derived aggregate (tire shreds Used tires have long been exported other (non-paving) products made from meeting engineering specifications) is used from California, mainly to Mexico. But crumb rubber. Along with a variety of di- in a variety of civil engineering applica- beginning in 2008, a surge in demand and rect monetary and technical/marketing assis- tions – for example, vibration mitigation in pricing catalyzed rapid growth in tire-de- tance services, these programs have provided light-rail systems and lightweight fill used rived fuel exports. New baling operations direct support to crumb rubber producers in landslide repair. CalRecycle technical (sometimes unpermitted) began competing and tire-derived product manufacturers. assistance helps develop and execute projects aggressively for tire supplies with established About a quarter of California crumb rubber and is complemented by a grant program. processors, driving tip fee revenue down and in 2015 was used as infill in synthetic turf In 2015, 11,668 tons of California tires triggering severe industry disruptions. This athletic fields. Despite sustained media were used at landfill projects. In coming trend peaked in 2012, declining somewhat 28 RR | August 2016 recently due to port strikes, CalRecycle enforcement and historically low prices for FIGURE 2: END USES OF CALIFORNIA SCRAP TIRES, BY YEAR competing like oil and coal. As is seen in markets for other recyclables, export is notoriously volatile and can shift abruptly with changes in demand, pricing, container availability and national policies. With strong competition and limited markets, processors sometimes view landfills as a profitable alternative, based on dif- ferential tip fee revenue and avoidance of operational costs needed to prepare materi- als for value-added markets. In 2015, three California landfills used a total of 15,217 tons as ADC. This is similar to recent years, although a single landfill’s decision to start or stop using ADC can greatly influence to- tal use. Also in 2015, tire disposal increased by 35 percent to 84,699 tons, the most since 2011, as export volumes declined.

WHAT LIES DOWN THE ROAD Predicting how tire recycling will evolve is difficult, and it’s even harder to say how sustainable materials management policies will be embraced or whether the ideals of the circular economy will be achieved. But Source: California Department of Resources Recycling and Recovery (CalRecycle) the industry can still point to a number of Note: Data prior to 2007 are based on a slightly different methodology and market key issues as important factors. category definitions. First is the question of market growth. CalRecycle has successfully developed a range of diverse scrap tire markets. But primary materials of East Coast-produced crumb rubber is recycling markets have not grown sig- • The predominance of product speci- used in tire manufacture. Tire manufac- nificantly in several years. Rubberized fications requiring virgin rubber use, turers cite concerns with paving applications hold great promise for established by thousands of original (related to fuel efficiency) and safety that increased, long-term demand. But even if equipment manufacturers, architects limit the potential for recycled content tires. doubled, paving would still use less than 20 and government agencies Also, there are no facil- percent of California tires. While currently ities in Western states. For these reasons, stable, synthetic turf infill and nuggets do Moreover, California has a relatively small tire-to-tire closed-loop recycling may never not appear poised for huge expansion. Civil rubber products industry when compared be an option for California scrap tires. engineering can use large volumes but is with the Midwest or Southeast, so fewer Perhaps more than in any other sporadic. companies are available to consider tire-de- recycling industry segment, entrepreneur- CalRecycle is increasingly promoting rived product development. ial firms in tire recovery have sought to new tire-derived product development and Critics have also pointed out that some commercialize so-called emerging technol- feedstock conversion, and several promis- tire recycling markets merely delay rather ogies for many years. Devulcanization can ing companies are currently producing or than replace landfill disposal, or do not render tire rubber usable in a wider range developing diverse products. But to date, make use of the inherent material proper- of manufacturing applications. the volume of rubber used remains relatively ties. Products like mats, landscaping pavers, and gasification are related technologies that low. There is certainly more potential, and synthetic turf infill and others are not yield fuel products along with carbon black, an unexpected innovation could occur at readily recyclable at the end of their useful a material that technically has many poten- any time. But difficult barriers must be lives. CalRecycle is beginning to research tial markets but which has proven difficult overcome, including: and support tire-derived product recycling, to market when produced this way. Com- • The time and cost needed to reformu- with an initial focus on synthetic turf infill mercial operations using these technologies late existing products or develop new as many fields approach the end of their de- in North America are still very limited. The ones sign lives and will need to be replaced. The appropriate role of conversion technologies • Tire rubber technical characteristics, Synthetic Turf Council is also promoting involving fuel production in a circular econ- which often relegate it to use as a reuse of crumb rubber turf infill. omy vision is controversial. Proponents are in products with forgiving performance True closed-loop recycling, of course, optimistic, but history shows the emergence and color characteristics would mean tires are recycled into new tires. of these technologies will be slow at best. • Current low prices for competing raw This may have the highest environmental Considering all those factors, it’s hardly materials derived from oil or other benefit, but currently only a small amount surprising a vigorous debate is occurring RR | August 2016 29 ESTIMATED END USES FOR CALIFORNIA-GENERATED WASTE TIRES 2013 2014 2015 Category Sub-Category Tons Percent of total Tons Percent of total Tons Percent of total

Processed TDF 73,958 16.7% 65,614 14.8% 110,144 26.2% Baled waste tires 36,446 8.25 28,426 6.4% Export Used tires (export) 12,678 3.0% 17,943 4.1% 7,128 1.6%

Subtotal 122,821 29.2% 128,346 29.0% 101,168 22.9%

Retread 40,635 9.7% 42,341 9.6% 43,358 9.8%

Reuse Used tires (domestic) 25,355 6.0% 24,336 5.5% 23,800 5.4%

Subtotal 65,990 15.7% 66,677 15.1% 67,158 15.2%

Paving 35,422 8.4% 34,708 7.8% 38,736 8.8%

Turf infill 20,040 4.8% 16,821 3.85 18,686 4.2%

Crumb Ground rubber/nuggets 14,175 3.4% 11,404 2.6% 12,144 2.7% rubber Molded and extruded 8,960 2.1% 7,855 1.8% 5,849 1.3%

Other 441 0.1% 2,098 0.5% 780 0.2%

Subtotal 4,557 1.1% 12,632 2.9% 11,668 2.6%

Landfill applications 2,612 0.6% 8,806 2.0% 10,374 2.3% Civil Non-landfill applications 1,945 0.5% 3,826 0.9% 1,294 0.3% engineering Subtotal 4,557 1.1% 12,632 2.9% 11,668 2.6%

Alternative daily cover 12,316 2.9% 14,691 3.3% 15,217 3.4%

Other diversion 152 0.0% 564 0.1% 533 0.1%

Tire-derived fuel 81,982 19.5% 83,934 19.0% 85,721 19.4%

Landfill disposal 53,320 12.7% 62,579 14.1% 84,699 19.1%

Estimated total managed 420,177 100.0% 442,311 100.0% 442,358 100.0%

Total diverted from landfill 366,857 87.3% 379,731 85.9% 357,659 80.9%

Total recycled 162,263 38.6% 170,138 38.5% 162,680 36.8% Imports 12,431 3.0% 12,661 2.9% 23,382 5.3%

Source: California Department of Resources Recycling and Recovery (CalRecycle)

over how state policies can best advance tire INFORMATION, INNOVATION AND and ventures that embody circular economy recycling. Connecticut and Vermont legisla- COLLABORATION principles. tors recently proposed, but didn’t adopt, Ultimately, tire recycling – and advance- While the pace of market development tire extended producer responsibility (EPR) ment toward circular economy goals – may can sometimes be slow, new forms of infor- legislation. But in California, where EPR rest on three key pillars. First is the need mation sharing and collaboration may be a is embraced for a variety of hard-to-manage for accurate, real-time data to help evaluate winning combination. products, the debate is different and varied. market opportunities and life-cycle sus- In 2015, CalRecycle published a new vision tainability measures. Second is the need Ed Boisson, principal of Boisson for scrap tire management policies based for grand-scale innovation at every level, Consulting, specializes in recycling industry on expanded per-ton incentive payments including tire design, crumb rubber produc- development. He was lead author of several to tire-derived product manufacturers and tion and tire-derived product manufacturing recent CalRecycle tire market studies, in col- possibly crumb rubber producers. The practices. laboration with DK Enterprises and under vision also calls for expanded procurement Finally, collaboration across the supply subcontract to Louis Berger Group. He can requirements, a phased-in landfill ban for chains and across public-private organi- be contacted at [email protected]. tires and tiered tire fees to promote the zations is crucial. For example, short of sale of longer-life tires. Currently, pending full-scale EPR, tire manufacturers could po- Reprinted with permission from Resource legislation (AB 1239) would increase the tire tentially play a more active role in collabora- Recycling, P.O. Box 42270, Portland, OR fee and enact expanded per-ton incentive tively researching, developing and investing 97242-0270; (503) 233-1305, (503) 233- payments. in new tire-derived-product technologies 1356 (fax); www.resource-recycling.com.

30 RR | August 2016